The video retailer GameStop has become a sensation as a meme stock. According to insiders, it is reported that the retailer is contemplating investing in Bitcoin and other cryptocurrencies.
It has been indicated by the sources that GameStop is looking to diversify its portfolio with alternative assets, especially focusing on crypto and bitcoin. Shares of GameStop soared by up to 20% in after-hours trading after the news came out.
Still, there is the risk that GameStop might decide against the investments. According to an insider, the firm is still thinking about whether this strategy will be suitable for its business models or not.
Recently, CEO Ryan Cohen shared an image on X with Microstrategy co-founder and chairman Michael Saylor, who is known to be the largest corporate holder of Bitcoin.
However, Saylor is not now part of discussions regarding GameStop’s cryptocurrency investments, sources state.
GameStop 2022 launched crypto wallets for users to help them manage their cryptocurrencies and non-fungible tokens. However, the services were discontinued in 2023 due to regulatory uncertainty.
Cohen, who co-founded Chewy, bought GameStop shares starting in 2020 and subsequently joined its board in 2021, as the company became one of the major meme stocks during the shorts trading frenzy.
His e-commerce background raised hopes for a revival of the traditional retailer, although GameStop is still struggling to catch up with the changing spending habits of gamers.
Under Cohen, GameStop has been operating with a cost-cutting approach to optimize operational efficiencies toward sustaining profitability, albeit without growth.
Should GameStop decide to go ahead with actually adding Bitcoin onto its balance sheet, it would fit right in with MicroStrategy, which has changed its corporate branding to ‘Strategy’. MicroStrategy has basically bought billions into Bitcoins over the years and not only this but it has also transitioned from a software company to a company that invests in Bitcoin, as a result, last week its Q4 Subscription Revenue soared.
Business Journalist
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